Investment opportunities in Foodtech with Julia Espeso

Following the presentation of the report Smart Agriculture: The Sustainable Food Challenge, the result of the 41st edition of our think tank Future Trends Forum, we continue to present some of the most interesting topics discussed by the participating experts.

We held the fourth webinar in this series: Investment opportunities in Foodtech with Julia Espeso. In this webinar, Julia Espeso, Ecosystem Director at Eatable Adventures, explores investment opportunities in the foodtech sector. We address with her the global trends in agritech, foodtech, delivery & logistics and restaurant tech, highlighting the main areas of innovation.

The foodtech sector offers enormous investment opportunities driven by the urgent need to transform the agri-food system towards more sustainable, efficient and technologically advanced models. The historically low investment in R+D within the food industry, especially compared to sectors such as technology or pharmaceuticals, has left ample room for innovation. This gap allows for the introduction of cutting-edge technologies such as biomanufacturing, precision fermentation, and directed evolution, which are revolutionizing food production by creating protein alternatives, natural ingredients, and more efficient processes. Startups such as Ekonoke, Cocuus , and Trusty are leading this transformation, applying solutions ranging from precision agriculture and 3D printing of food to traceability using blockchain. In addition, the growing interest of consumers in healthy and sustainable products, together with the support of specialized accelerators such as Eatable Adventures, creates an ecosystem conducive to investments that promise profitability along with a positive impact on global food.

If you want to watch the webinar, you can do so here:

Investment opportunities in Foodtech with Julia Espeso

Below, we summarize the ideas discussed in the webinar:

Eatable Adventures: Driving Innovation in the Food Industry

Julia Espeso presents the mission of the accelerator and its focus on transforming the global agri-food system. Eatable Adventures has established itself as one of the most important accelerators in the food sector worldwide, with the aim of creating a sustainable future for the agri-food value chain. Its strategy combines the application of cutting-edge technologies and investment in startups with great potential for impact.

The accelerator works closely with universities, research centers, governments, and corporations to identify and support startups developing innovative solutions in the food field. In addition, Eatable Adventures manages several innovation hubs globally, including the Madrid Food Innovation Hub, which hosts incubation and acceleration programs, helping more than 120 startups scale their technology solutions. Its global network includes partnerships with more than 50 corporations and a €30 million investment fund to support initiatives in the pre-seed and seed phases.

Eatable Adventures’ approach is based on integrating new technologies at every stage of the agri-food chain, from primary production to the final consumer, promoting sustainability, efficiency and access to quality food. Among the emerging technologies they support, biomanufacturing, precision fermentation, the use of artificial intelligence and Big Data to improve agricultural processes, and the development of protein alternatives stand out. These innovations seek to increase the efficiency of food production while reducing environmental impact and responding to the growing challenge of feeding an expanding global population.

In addition, Eatable Adventures identifies and promotes transformative technologies, such as biosynthesis, new ingredients and sustainable packaging, that have the potential to radically change the way we produce and consume food. Through its acceleration programs, the organization supports entrepreneurs throughout the entire process, from the validation of their technologies to the expansion and commercialization of their products in the global market.

Investment in R+D in the food sector: a challenge and an opportunity

One of the most interesting points presented by Julia Espeso is the comparison between investment in research and development (R+D) in the food industry and other sectors. The Research Intensity Ratio, which measures the proportion of revenue allocated to R+D, reveals that the food industry invests significantly less in innovation compared to other key sectors such as technology or pharmaceuticals. While the software industry allocates 30% of its revenues to R+D and the pharmaceutical sector 16%, agri-food barely reaches 0.043%. This is surprising, considering that food is a basic need for humanity.

This low level of investment in innovation has kept the food sector lagging behind other industries, despite the enormous challenges it faces, such as soil degradation, climate change, and population growth. However, this limitation also presents a great opportunity: the possibility of introducing advanced technologies in a sector that urgently needs to optimize its production processes and reduce its environmental impact.

Applying pharmaceutical technologies to foodtech

A key focus that is revolutionizing the sector is the transfer of pharmaceutical technologies to the food sector. In recent years, the healthcare industry has been a pioneer in the application of biotechnology for the creation of more efficient drugs and treatments. The same logic is beginning to apply in foodtech, where biomanufacturing and synthetic biology techniques play a crucial role. One example is precision fermentation, a technology that is used in the pharmaceutical industry for the production of vaccines and medicines, and which is now adapted to the food sector to create proteins and compounds of interest in a more sustainable way. This process allows microorganisms such as bacteria or yeasts to produce proteins and other food ingredients on a large scale, more efficiently and with less environmental impact.

Another concept imported from the pharmaceutical industry is directed evolution, which allows microorganisms to be guided to produce certain compounds without the need to genetically modify them. This technique is revolutionizing the production of natural additives, such as colorings or flavors, making their development more efficient and avoiding the regulatory hurdles associated with genetically modified organisms.

These technologies, originating in the health sector, must overcome one of the great challenges of foodtech: scaling production. While the pharmaceutical industry works with micrograms of active ingredients, the food sector needs to produce huge amounts of proteins, fats and carbohydrates to feed the world’s population. The adoption of these innovations on an industrial scale is key to bridging the gap between the lab and the market, allowing biotech products to be not only sustainable, but also price-competitive.

This approach of applying technologies from other sectors to foodtech is ushering in a new era for the food industry, opening up endless possibilities to improve efficiency, reduce costs and deliver healthier, more sustainable food on a global scale.

Outstanding startups in the agri-food sector

Julia Espeso shares perspectives on technological trends and investment opportunities in the foodtech sector, giving as an example eleven startups that are leading the change. Below, we review the most promising projects presented by Julia, which seek innovative solutions in different areas of the food system:

1. Ekonoke: This startup, driven by precision agriculture, specializes in growing hops using advanced technologies such as artificial intelligence and robotics. Ekonoke seeks to solve the growing demand for key ingredients in beer production, helping to alleviate the effects of climate change that threaten traditional crops.

2. Cocuus: specialized in 3D printing proteins, Cocuus is developing sustainable food products using advanced biomanufacturing technologies. Based in Navarra, this startup has attracted the attention of global investors thanks to its ability to create protein alternatives that replicate the organoleptic characteristics of meat.

3. Trusty: it relies on blockchain technology to guarantee transparency in the trade of cocoa, one of the most opaque sectors in terms of production conditions. In addition, it seeks to implement microfinance models to support small farmers.

4. Foreverland Food: This startup is working on replacing cocoa with carob, using local and natural ingredients to reduce dependence on crops that face climate and sustainability pressures.

5. Hypesound: has developed a technology that accelerates fermentation processes by applying sound waves. This innovation promises to reduce operating costs in sectors such as beer and wine production, while improving process efficiency.

6. Néboda Farms: specializing in autonomous agriculture, Néboda Farms uses robotics and artificial vision to optimize the production of crops such as basil. Its main objective is to reduce operating costs in vertical farming, making products competitive in price.

7. Regrowth: With a strong technological foundation, Regrowth focuses on precision livestock farming solutions. Although the startup is recent, its potential impact on animal health and welfare as well as productivity makes it a key player.

8. Soonapse: Focused on forecasting and automating agricultural production, Soonapse uses artificial intelligence and IoT to optimize production cycles and reduce cultivation times, thus improving the efficiency of farms.

9. Mmmico Eats: it is distinguished by its focus on the directed evolution of microorganisms to produce natural dyes, avoiding the use of genetically modified organisms. This technology allows the creation of food additives without the regulatory challenges associated with GMOs.

10. Agreen BioSolutions: Dedicated to extending the shelf life of fresh produce, Agreen BioSolutions develops natural coatings that keep food in tip-top condition for longer, helping to reduce food waste.

11. Agreenet: Similar to Agreen BioSolutions, Agreenet works on developing sustainable packaging solutions that optimize food preservation, aligning with the growing demand for eco-friendly practices in the food industry.

Conclusions of the Q&A session

During the Q session, Julia Espeso addresses several critical issues for the sector, including Spain’s role in the foodtech ecosystem, regulatory barriers and consumer evolution in the face of new foods.

Spain’s role in the foodtech sector

Espeso highlights Spain’s potential as a leader in food technology thanks to its experience in the agri-food sector and the strong presence of research centres and universities. However, it also mentions the challenges facing the country due to climate change and the lack of mechanisms for the rapid translation of technological innovation from laboratories to the market.

Regulatory barriers

One of the main challenges for agri-food startups in Europe is strict regulation, especially compared to other markets such as Singapore, where products such as cultured meat have already been authorized. Espeso stresses that regulations in the European Union are a recurring obstacle to the commercialization and expansion of innovative products.

Acceptance of synthetic food

An attendee asks about social resistance to lab-produced food. Espeso points out that “chemophobia” (fear of synthetic products) is a major challenge, but stressed the need to educate the consumer about the benefits of these products, both in nutritional terms and sustainability. Social acceptance, according to Espeso, will be key to the mass adoption of these foods in the future.

Conclusion

The foodtech sector is in the midst of a transformation, with innovative startups that address everything from agricultural production to sustainable packaging. Thanks to the boost of technology and the support of accelerators such as Eatable Adventures, the future of food is becoming increasingly sustainable and efficient. However, the key to its success lies in the collaboration between investors, corporations, regulators and, above all, in the ability of consumers to adapt to these new products.

If you’re interested in the future of food, be sure to read our report Smart Agriculture: The Sustainable Food Challenge. This report is the result of conversations at our Future Trends Forum, where more than 40 global experts discussed how to meet the challenge of feeding a world population that will reach 10,000 million people by 2050. The report addresses sustainable solutions that integrate innovation and respect for natural balance, with key topics such as regenerative agriculture, alternative proteins, efficient water management, and the use of artificial intelligence and Big Data to optimize soil health. This document is essential to understand how, from a global collaboration that includes regulators, educators, the food industry, consumers, investors and startups, we can build a sustainable and resilient food future.

Other articles in this series:

• Sustainable Nutrition Challenges and Solutions

• Alternative Proteins: Towards a Sustainable Food Future

• Innovation in the kitchen: technologies and trends